Oil States International reported higher third-quarter revenue and adjusted earnings than a year earlier, with sequential growth led by Offshore Manufactured Products and Downhole Technologies. Net income was $3.1 million, or $0.05 per share; excluding charges, adjusted net income was $8.5 million, or $0.15 per share.
The company also said its Offshore Manufactured Products backlog rose to its highest level since December 2014 and approved a new $50 million share-repurchase authorization.
Key details
- Revenue and earnings: Revenue was $169.8 million, up 8% from the second quarter and 3% from the third quarter of 2025. Adjusted EBITDA was $20.1 million, up 6% sequentially but down 3% year over year.
- Reported versus adjusted results: Operating income was $6.3 million, down 46% sequentially and up 33% year over year. Adjusted operating income was $11.8 million, up 12% sequentially and 43% year over year. The company said third-quarter operating income included $5.5 million in charges. Net income fell 47% sequentially but rose 64% year over year; adjusted net income was about flat sequentially and up 80% year over year.
- Offshore Manufactured Products: Revenue increased 13% sequentially to $104.4 million, but was 4% below the year-earlier quarter. Adjusted segment EBITDA rose 5% sequentially to $18.8 million and was down 16% year over year. Backlog grew 7% sequentially to $482 million, and the segment’s book-to-bill ratio was 1.3 times—meaning orders exceeded revenue during the quarter.
- Downhole Technologies: Revenue increased 6% sequentially to $42.2 million and 45% year over year. Adjusted segment EBITDA was $3.6 million, down 16% sequentially. The segment had reported an operating loss in the year-earlier quarter.
- Completion and Production Services: Revenue declined 5% sequentially to $23.2 million and 16% year over year. Adjusted segment EBITDA fell 7% sequentially to $6.1 million and 23% year over year.
- Revenue by destination: Offshore and international revenue rose 9% sequentially to $121.8 million, while U.S. land revenue increased 7% to $48.0 million. Compared with a year earlier, offshore and international revenue was down 1%, while U.S. land revenue was up 15%.
- Corporate costs: Corporate operating costs were $14.1 million, compared with $8.9 million in the prior quarter and $9.1 million a year earlier. Corporate adjusted EBITDA was a loss of $8.3 million, narrower than the prior quarter’s $9.7 million loss.
- Share repurchases: Oil States repurchased $4 million of its common stock during the quarter. Its board approved a new authorization for up to $50 million of repurchases, which expires in October 2028.
Plain-English implications
The quarter showed stronger revenue than in the prior period, but performance varied by business: Offshore Manufactured Products and Downhole Technologies grew sequentially, while Completion and Production Services contracted. The $482 million backlog and 1.3-times book-to-bill ratio indicate that orders for Offshore Manufactured Products exceeded shipments in the quarter. The new repurchase authorization gives the company capacity to buy back additional shares, but does not itself commit it to spend the full amount.